On Tue, 07 Sep 2004 16:56:53 -0400, Brian Lawson wrote:

||Hey John,
||
||I'm posting this reply before reading further on to see what others
||have to say, and besides, I can't help with where to live in Phoenix.
||But you make a statement about your present home in S.D that I think
||you should do some investigating about. If your son "takes over" the
||house, will he actually get a mortgage and own it? If not, then the
||mortgage remains with you, and that cost may reflect on any future
||mortgage that you apply for on a place in Phoenix. And if you are
||successful in getting that mortgage, you will become a "landlord", and
||future sales may reflect as capital income. Don't take my word for
||any of this, but speak to someone down your way who knows and is
||familiar with your "rules".

Brian speaks the truth. Make sure it's a bona fide sale or you will be liable
for the capital gains on the appreciation of the house. I just went through
this, renting my house to my daughter. I believe you have to reside in the house
for 2 of the previous 5 years in order to escape the capital gains tax on the
"profit" when you do finally sell it.
Texas Parts Guy